Eisai do the math and be honest! really 20%=600 employees fired by April 1st?!

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Japanese drug maker Eisai plans to eliminate about 70 employees at its research and manufacturing campus in Research Triangle Park as part of a broader U.S. restructuring that will cost about 600 jobs.

As with other pharmaceutical companies, Eisai is streamlining operations as it faces increasing competition from generic medicines, lower reimbursement fees and slower sales of its own products, including the Alzheimer's treatment Aricept.

Eisai, which has its U.S. headquarters in New Jersey, expanded its RTP operations last May, opening a $100 million, 65,000 square-foot facility.

The company employs about 325 people at its RTP campus, which also includes another, 190,000 square-foot manufacturing and research facility.

Among other tasks, RTP workers help package and label Halaven, a treatment for late-stage breast cancer that U.S. regulators approved last year.

“Although the company is reducing its head count, Eisai’s Research Triangle Park facility will continue to serve as a global strategic site for Eisai’s worldwide operations, and we will continue to collaborate with local government, academic and community institutions," said said Lou Arp, Eisai's General Manager of Supply Operations, in a prepared statement.

"Furthermore, our recently completed parenteral facility will continue to support our oncology business, which remains strong," he added. "This adjustment to our operations will enable us to increase our efficiency and better position this site as a global asset.”

The company expects to eliminate the 600 jobs, representing about 20 percent of its U.S. workforce, by April 1.



Read more: http://www.newsobserver.com/2011/03/08/1038125/eisai-to-cut-70-jobs-in-rtp-in.html#ixzz1G6aPkbz0
 




By Drew Armstrong

(Adds closing share price in sixth paragraph.)

March 8 (Bloomberg) -- Eisai Co., the Japanese drugmaker that lost patent protection on its bestselling pill in November, said it will fire 20 percent of its U.S. workforce by April 1.

The elimination of about 600 U.S. jobs are part of a broader 900-person reduction included in a five-year strategic overhaul, Lynn Kenney, a spokeswoman for Tokyo-based Eisai, said in an e-mail. The company announced last week plans to cut 200 positions in Europe and 100 sales jobs in Japan to help improve profitability in the face of cheaper copies of its Aricept pill.

“This restructuring is essential to our remaining competitive in this rapidly changing environment,” Lonnel Coats, chief executive officer of subsidiary Eisai Inc., said in a statement. “It will enable us to continually make the necessary investments in our science, our people and ultimately our human health care mission,” he said.

Generic versions of Aricept have led to a 70 percent discount in the value of the medicine, said Surajit Pal, a health-care analyst at Elara Securities (India) Pvt., in a March 3 report. The drug generated 322.8 billion yen ($3.9 billion) in revenue, or about 40 percent of Eisai’s sales, in the year ended March 31, 2010.

Eisai is aiming for an operating margin, or the amount of profit on each yen of revenue, of 25 percent by fiscal 2016, according to presentation material filed with the exchange on March 3. The company’s 2010 operating margin was 11 percent, according to data compiled by Bloomberg.

Eisai gained 1.3 percent to 3,150 yen at the 3 p.m. close of trading on the Tokyo Stock Exchange. The benchmark Topix index slid 0.3 percent.

--With assistance from Greg Chang in San Francisco, Kanoko Matsuyama in Tokyo and Jason Gale in Singapore. Editors: Angela Zimm, Andrew Pollack, Jason Gale

To contact the reporter on this story: Drew Armstrong in Washington at darmstrong17@bloomberg.net;

To contact the editor responsible for this story: Adriel Bettelheim at abettelheim@bloomberg.net; Reg Gale in New York at rgale5@bloomberg.net
 




ALAN M. WOLF - Staff Writer
Japanese drug maker Eisai plans to eliminate 70 employees at its Research Triangle Park campus as part of a broader restructuring that will cost about 600 U.S. jobs.

As with other pharmaceutical companies that are streamlining operations, Eisai faces increasing competition from generic medicines, slower sales and lower reimbursement fees.

One of its top products, the Alzheimer's treatment Aricept, lost its patent protection last fall. The pill, which is packaged in RTP, accounted for about 40 percent of Eisai's $9.7 billion in annual sales but is quickly losing ground to cheaper, copycat versions.


To offset that lost revenue, Eisai is trying to bolster its roster of cancer drugs. In May, the company opened a $100 million, 65,000-square-foot facility in RTP to produce and package cancer drugs. RTP workers are packaging Halaven, an injectable treatment for late-stage breast cancer that U.S. regulators approved last fall.

The oncology center was Eisai's third local expansion since 1995, when its RTP operations opened. The company, which has its U.S. headquarters in New Jersey, now employs about 325 people at the 130-acre RTP campus, which also includes a 190,000-square-foot manufacturing and research facility.

The oncology side of Eisai's business remains "extremely healthy," and company executives called Durham officials on Monday to reassure them that they plan to keep a strong local presence, said Durham County Manager Michael Ruffin.

Eisai's RTP operations "will continue to serve as a global strategic site for Eisai's worldwide operations," said Lou Arp, Eisai's general manager of supply operations, in a prepared statement. "This adjustment to our operations will enable us to increase our efficiency and better position this site as a global asset."

To help lure the latest Eisai expansion in 2006 and 84 new jobs, Durham County promised the company about $1 million in incentives, tied to investment and hiring milestones. The county has given Eisai about $600,000 so far.

"They're ahead of target at this point," Ruffin said.

Though it's unlikely that laid-off workers will be able to shift to the oncology side of the business, Eisai will try to help place them at other pharmaceutical companies that are hiring as they expand their local operations, Ruffin said. Eisai is considering holding a job fair to help affected workers get new positions at employers such as Merck's vaccine plant in North Durham and Novartis' facility in Holly Springs.

"We are keenly aware of the impact this restructuring has on our employees and their families," Eisai spokeswoman Lynn Kenney said. "Eisai will provide support to employees who are displaced so that their transition to new careers is as smooth as possible."

Merck plans to add about 150 workers at its Durham facility. Officials haven't been in contact with Eisai but "will be interested in talking to the displaced employees," spokeswoman Cheznee Johnson said.

In all, Eisai expects to eliminate 600 jobs, or about 20 percent of its U.S. work force, by April 1. The company also is cutting jobs in Europe and Japan.

Eisai's American depositary receipts, which are U.S.-traded common shares for foreign companies, rose 46 cents to $38.15 on Tuesday. The ADRs are up 5 percent this year.

alan.wolf@newsobserver.com or 919-829-4572


Read more: http://www.newsobserver.com/2011/03/09/1039420/eisai-to-cut-70-jobs-in-rtp.html#ixzz1G6bZxqcY
 








Anonymous said:
ALAN M. WOLF - Staff Writer
Japanese drug maker Eisai plans to eliminate 70 employees at its Research Triangle Park campus as part of a broader restructuring that will cost about 600 U.S. jobs.

As with other pharmaceutical companies that are streamlining operations, Eisai faces increasing competition from generic medicines, slower sales and lower reimbursement fees.

One of its top products, the Alzheimer's treatment Aricept, lost its patent protection last fall. The pill, which is packaged in RTP, accounted for about 40 percent of Eisai's $9.7 billion in annual sales but is quickly losing ground to cheaper, copycat versions.


To offset that lost revenue, Eisai is trying to bolster its roster of cancer drugs. In May, the company opened a $100 million, 65,000-square-foot facility in RTP to produce and package cancer drugs. RTP workers are packaging Halaven, an injectable treatment for late-stage breast cancer that U.S. regulators approved last fall.

The oncology center was Eisai's third local expansion since 1995, when its RTP operations opened. The company, which has its U.S. headquarters in New Jersey, now employs about 325 people at the 130-acre RTP campus, which also includes a 190,000-square-foot manufacturing and research facility.

The oncology side of Eisai's business remains "extremely healthy," and company executives called Durham officials on Monday to reassure them that they plan to keep a strong local presence, said Durham County Manager Michael Ruffin.

Eisai's RTP operations "will continue to serve as a global strategic site for Eisai's worldwide operations," said Lou Arp, Eisai's general manager of supply operations, in a prepared statement. "This adjustment to our operations will enable us to increase our efficiency and better position this site as a global asset."

To help lure the latest Eisai expansion in 2006 and 84 new jobs, Durham County promised the company about $1 million in incentives, tied to investment and hiring milestones. The county has given Eisai about $600,000 so far.

"They're ahead of target at this point," Ruffin said.

Though it's unlikely that laid-off workers will be able to shift to the oncology side of the business, Eisai will try to help place them at other pharmaceutical companies that are hiring as they expand their local operations, Ruffin said. Eisai is considering holding a job fair to help affected workers get new positions at employers such as Merck's vaccine plant in North Durham and Novartis' facility in Holly Springs.

"We are keenly aware of the impact this restructuring has on our employees and their families," Eisai spokeswoman Lynn Kenney said. "Eisai will provide support to employees who are displaced so that their transition to new careers is as smooth as possible."

Merck plans to add about 150 workers at its Durham facility. Officials haven't been in contact with Eisai but "will be interested in talking to the displaced employees," spokeswoman Cheznee Johnson said.

In all, Eisai expects to eliminate 600 jobs, or about 20 percent of its U.S. work force, by April 1. The company also is cutting jobs in Europe and Japan.

Eisai's American depositary receipts, which are U.S.-traded common shares for foreign companies, rose 46 cents to $38.15 on Tuesday. The ADRs are up 5 percent this year.

alan.wolf@newsobserver.com or 919-829-4572


Read more: http://www.newsobserver.com/2011/03/09/1039420/eisai-to-cut-70-jobs-in-rtp.html#ixzz1G6bZxqcY
Click to expand...

I guess Eisai has found a way to acquire NC real estate with subsidies from the state of NC. What on earth do they need 130 acres so so many sq feet for in a shrinking company? If the drugs don't produce revenue maybe real estate will when the market comes back.
 




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